If the Income Elasticity of a Good Is Negative, We

question 43

Multiple Choice

If the income elasticity of a good is negative, we can conclude that the good is

• A) an inferior good.
• B) a normal good.
• C) a luxury good.
• D) a necessity.

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Definitions:

Unequal Access

A situation where resources, opportunities, or services are distributed unevenly among different groups in society.

Affordability

The degree to which a good or service is priced at a level that is accessible to individuals or communities, often in relation to income and expenses.

Latent Function

Unintended and unrecognized consequences of an institution or social phenomenon.

Education

The process of receiving or giving systematic instruction, particularly at a school or university, fostering knowledge and skill development.